RYE, N.Y.--(BUSINESS WIRE)--Jun. 3, 2016--
Acadia Realty Trust (NYSE:AKR) (“Acadia” or the “Company”) today
provided an update on its core portfolio (“Core”) acquisition activity,
and announced that year-to-date, the Company has closed on $121.5
million of Core acquisitions and is under contract to acquire another
$290.6 million, for a total of $412.1 million of Core acquisitions.
These high-quality street and urban retail properties are located within
key retail corridors in gateway cities, serving consumers’ and
retailers’ continued desire for live-work-play retail experiences.
At the close of the first quarter, the Company announced $115.3 million
of Core acquisitions. Subsequently, the Company has closed on or is
under contract to acquire an additional $296.8 million of Core
acquisitions, as discussed below:
The Smithfield Portfolio, Chicago, IL. The Company previously
announced that it had entered into a contract to acquire a retail
portfolio for $150 million. The contract is for the Smithfield
Portfolio, a five property portfolio located in Chicago totaling 183,800
square feet. The five stabilized retail assets are located in prime
retail markets of Chicago, including State Street, Lincoln Park,
Bucktown, and Logan Square. The Portfolio benefits from solid in-place
tenancy, below market leases and strong demographics, with median
household incomes above $94,000 within one mile of the two State Street
properties and over $92,000 within one mile of the North & Kingsbury
property. State Street is surrounded by many of Chicago’s premier
attractions including Millennium Park, the Art Institute, Orchestra
Hall, the Theater District, and Grant Park. The Company expects to
assume $59.7 million of in-place mortgage debt with various lenders in
connection with this transaction.
The two State Street properties and the North & Kingsbury property are
the three largest properties in the portfolio and are located in two of
the top street retail shopping corridors in the city. Together they
represent in excess of 90% of the portfolio’s value.
State & Washington Shops is a 78,800
square foot street retail condominium 100% leased to Nordstrom Rack,
H&M, and Walgreens. The property is located in the middle of the Loop’s
main shopping corridor and Chicago’s Central Business District,
benefiting from a 24/7 neighborhood with strong tourist, office worker,
and residential populations. The robust tenant sales and low vacancy
levels on State Street are a testament to these demographics. The
Property benefits from co-tenancy with many national retailers including
Zara, Anthropologie, DSW, Saks Off 5th, and Urban Outfitters.
Given its strong tenancy, robust tenant sales and below market rents,
this property benefits from long-term stability, with significant longer
term growth potential.
151 North State is a 27,400 square foot
street retail condominium at the corner of State and Randolph that is
100% leased to a flagship Walgreens. The location and quality of the
retail are among the best in the corridor and Walgreens has created a
showpiece store for the brand, as it continues to execute its urban
live-work-play initiatives.
North & Kingsbury Center is a 41,700
square foot shopping center located on one of the best corners of
Lincoln Park’s premier North Avenue retail corridor. The property is
100% leased to Old Navy, Blick Art Supplies, Modani Furniture, and Pier
1 Imports. The property benefits from its excellent visibility, on-grade
parking lot and position next to a high volume 75,000 square foot Whole
Foods. All four of the leases are below market rents, presenting long
term upside. The center adds to the Company’s other property on North
Avenue, 865 West North Avenue, which is 100% leased to Forever 21. Other
tenants on the street include Apple, Crate & Barrel, The Container
Store, Sephora, J. Crew, and Victoria’s Secret.
555 9th Street, San Francisco, CA. The
Company is under contract to acquire a 149,000 square foot urban
shopping center, located in San Francisco, for $140.6 million. 555 9th
Street is anchored by Trader Joe’s, Nordstrom Rack, and Bed Bath &
Beyond, all of which have been successfully operating at the property
for over 15 years. The infill property is centrally located in SoMa, at
the confluence of several of the fastest growing submarkets in San
Francisco. 555 9th Street is situated in close proximity to
the city’s two major highways and has ample parking capacity, a rarity
among urban shopping centers in the market. High population density
(over 522,000 within three miles), affluence ($95,000 median income
within three miles), and substantial barriers to entry for national
retail users in the market have led to strong rent growth. The property
is nearly 100% leased to credit tenants with substantial lease term,
though, given the vintage of the leases and strong market rental growth,
multiple leases are at below-market rents, which provides long term
upside opportunities. This is Acadia’s second core acquisition in San
Francisco. With this acquisition, Acadia will own two of the most
dominant urban shopping centers in the city of San Francisco. The
Company expects to assume $60.0 million of in-place mortgage debt in
connection with this acquisition.
165 Newbury St, Boston, MA. In May 2016, the Company acquired a
100% interest in 165 Newbury Street for $6.3 million. 165 Newbury is a
1,600 square foot retail condominium located along Newbury Street, the
premier retail corridor in Boston. The property is the Company’s first
core acquisition on Newbury Street, and is occupied by Starbucks. The
property’s growth is driven by Starbucks’ lease, which has 3% annual
contractual rent growth. Newbury Street has a high concentration of
national, credit retailers, and the property shares the Dartmouth-Exeter
block with Intermix, Steven Alan, Jack Wills, and Bluemercury.
“Given some market volatility and increased desire for certainty of
execution by sellers, we have been able to acquire fortress quality
urban/street retail properties with strong defensive profiles and
superior long term growth potential,” stated Kenneth F. Bernstein,
President and CEO of Acadia Realty Trust. “These acquisitions address
the ongoing trends in demographics toward more key, flagship urban
markets and address retailers’ demand to focus on brand enhancing,
highly productive, unique locations in the key gateway markets where
shoppers live, work, and play.”
No assurance can be given that the Company will successfully close on
the above acquisitions under contract, which are subject to customary
closing conditions and lender approval of the assumption of existing
mortgage debt.
NAREIT’s REITWeek Investor Forum. As previously announced, the
Company will participate in REITWeek 2016: NAREIT’s Investor Forum®,
which will be held on June 7-9, 2016 in New York, New York. Mr.
Bernstein, is scheduled to make a company presentation on Wednesday,
June 8, 2016 at 2:45 p.m. ET.
About Acadia Realty Trust
Acadia Realty Trust is an equity real estate investment trust focused on
delivering long-term, profitable growth via its dual – core and fund –
operating platforms and its disciplined, location-driven investment
strategy. Acadia Realty Trust is accomplishing this goal by building a
best-in-class core real estate portfolio with meaningful concentrations
of assets in the nation’s most dynamic urban and street-retail
corridors; making profitable opportunistic and value-add investments
through its series of discretionary, institutional funds; and
maintaining a strong balance sheet. For further information, please
visit www.acadiarealty.com.
Safe Harbor Statement
Certain matters in this press release may constitute forward-looking
statements within the meaning of federal securities law and as such may
involve known and unknown risks, uncertainties and other factors that
may cause the actual results, performances or achievements of Acadia to
be materially different from any future results, performances or
achievements expressed or implied by such forward-looking statements.
These forward-looking statements include statements regarding Acadia’s
future financial results and its ability to capitalize on potential
investment opportunities. Factors that could cause the Company’s
forward-looking statements to differ from its future results include,
but are not limited to, those discussed under the headings “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in the Company’s most recent annual
report on Form 10-K filed with the SEC on February 19, 2016 (“Form
10-K”) and other periodic reports filed with the SEC, including risks
related to: (i) political and economic uncertainty; (ii) the Company’s
reliance on revenues derived from major tenants; (iii) the Company’s
limited control over joint venture investments; (iv) the Company’s
partnership structure; (v) real estate and the geographic concentration
of the Company’s properties; (vi) market interest rates; (vii) leverage;
(viii) liability for environmental matters; (ix) the Company’s growth
strategy; (x) the Company’s status as a REIT; (xi) uninsured losses and
(xii) the loss of key executives. Copies of the Form 10-K and the other
periodic reports Acadia files with the SEC are available on the
Company’s website at www.acadiarealty.com.
Any forward-looking statements in this press release speak only as of
the date hereof. Acadia expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in
Acadia’s expectations with regard thereto or change in events,
conditions or circumstances on which any such statement is based.
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Source: Acadia Realty Trust
Acadia Realty Trust
Amy L. Racanello, 914-288-8100